Forget the Bitcoin Dominance Index and Track This Instead

The Bitcoin Dominance Index (BDI) is one of the most popular and talked-about data points in the crypto asset market. But there are many problems with this measurement of Bitcoin's role as the gold standard of cryptocurrencies. Most of the issues associated with the BDI have to due with its reliance on the problematic market cap metric, as there are plenty of different ways in which this statistic can be gamed.

As I covered in a previous article, a combination of different data points is likely to provide a much more accurate depiction of Bitcoin's role in the greater cryptocurrency ecosystem. Of course, such a model for comparing cryptocurrencies is not available — at least not to the general public. Perhaps there simply isn't enough demand for a worthwhile system of tracking the various competing cryptocurrencies because Bitcoin is known to be the king without much real competition.

With all of this in mind, it may be wise to ignore the BDI completely and replace it with something more practical, such as a comparison of the Bitcoin and gold markets. Bitcoin's utility as an apolitical, uncontrolled form of digital money is still the main, proven use case of this technology, which is why it was given the "digital gold" nickname. Read More...

#BTC #Altcoins

Antminer Banner.png